An Empirical Study Of FDI On The Employment Effects Of Wuxi City

China’s opening-up policy has been for over30years.In today’sgrowing trend of economic globalization, foreign direct investment (FDI)has had a profound impact on China’s economic and society.Employment isone of the livelihood issues. Faced with increasingly severe employmentsituation, the study on the impact of FDI is of great significance.Based on a review of the domestic and abroad study,this paper sortsout various theories of FDI on the employment effects.As an opening upcity,Wuxi city locates at the south of Jiangsu province. This paper makesWuxi city as the research object and describes it’s FDI and employmentsituation.Then this paper makes regression analysis on the FDI-relateddata and employment-related data during1995to2010.After that, thispaper concludes that： FDI plays a positive role in employment size、employment quality and in employment absorption of the three industries.The effect in secondary industry is strongest but weakest in primaryindustry.Finally, from the perspective of government decision–making，thispaper makes the following recommendations: scientificly make investmentstrategy thus to broaden the channels of foreign-funded enterprises tosolve the employment problem;promote the integration of development of secondary and tertiary industries thus to enhance the role of FDI inemployment effects;foster the competitiveness of local enterprisesthus to comprehensively promote employment growth;actively develophuman resources thus to provide support for the development of marketeconomy;ensure the natural flow of the population thus to play it’simportant role maximally.Then we can increase the utilization of FDIand make FDI play a better role in the effect on employment.